Investing Caffeine

FEBRUARY 1, 2022

Math Matters. I did okay in school and was educated on many different topics, including the basic principle that math matters. Source: Calafia Beach Pundit. This notion rings especially true when it comes to finance and investing.

Math 52

Math Assets Investing Investments 52

Brown Advisory

MAY 3, 2018

MUNICIPALS AND RISING RATES Simple math dictates that when yields rise, fixed-rate bond prices fall. Whether rates are rising or falling, we manage risk using the same consistent process: We look for bonds with attractive valuation relative to our view of their potential cash flows. Both indexes include reinvestment of income.

Portfolio 52

Portfolio Taxes Valuation Clients 52

Brown Advisory

MAY 3, 2018

Simple math dictates that when yields rise, fixed-rate bond prices fall. Whether rates are rising or falling, we manage risk using the same consistent process: We look for bonds with attractive valuation relative to our view of their potential cash flows. It often reflects how much it costs for banks to borrow from one another.

Portfolio 52

Portfolio Taxes Valuation Clients 52

Brown Advisory

JUNE 16, 2022

Central banks globally are raising interest rates and this is having a chilling effect on equities and bonds alike. We discount each year at our 10% minimum weighted average cost of capital (WACC) and some infinite series maths gives us the basis for some rough approximations 2. DCFs are very dangerous if not used thoughtfully.

Investing 52

Investing Investments Accounting Valuation 52

The Big Picture

DECEMBER 6, 2022

So, yeah, I had a career in investment banking with Jefferies, and it was a really good professional experience because I do have the opportunity to work in M&A, equity and debt financing. I had the chance to be part of some very interesting transactions in the banking space. billion deal. BERRUGA: Yeah, speed.

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Brown Advisory

JANUARY 17, 2024

We all know that a 55% hit rate is the top decile across the industry, and the maths above demonstrates why. Both types of error are due to a combination of either mis-assessing the business quality or its valuation (or both). Bank Rakyat’s micro lending business has approximately 98% annual payback on its loans.

Investing 52

Investing Investments Portfolio Accounting 52

Mr. Money Mustache

MAY 20, 2022

It’s fun math – a 20% drop in prices means you get 25% more shares for your dollar, and a 50% drop means twice as many , or 100% more shares per dollar invested.). So let’s cover each point properly, so you can be excited about all this as I am. 1) Why is this healthy again?

Marketing 53

Marketing Marketing Retirement Investments 53

The Big Picture

AUGUST 15, 2023

RITHOLTZ: So hold the duration risk aside with those two, but just for an investor in treasuries, I know you’ve done the math before. If you’re giving up that 1% big fat yield in 2019, 2021, let’s say you give up three years of 1% and get zero, how does the math work over the subsequent couple of years?

Management 130

Management Investments Investing Government 130

The Big Picture

MAY 9, 2023

Investment banks were not really a known concept in the area where I grew up. I lined up a bunch of job interviews with a variety of banks. So I got to know banks a little bit. So I interviewed with a bunch of banks, got a number of job offers by the end of the week, and joined Goldman Sachs in October 1998.

Assets 299

Assets Clients Investments Investing 299

The Big Picture

SEPTEMBER 10, 2024

Mike Wilson has been with Morgan Stanley since 1989, rising up through the ranks of institutional sales, trading, investing, banking to eventually becoming Chief Investment Officer and Chief US Equity Strategist. So I was really investment banking. Second part of our framework is valuation fundamental work.

Valuation 162

Valuation Clients Investments Investing 162

The Big Picture

AUGUST 29, 2023

So when you think about what people are earning in their deposit accounts at their banks, and banks have historically been very slow to raise, very slow in terms of raising deposit rates because those deposits tend to be very sticky. DAVIS: Where international equities, because of valuations, probably 7% to 7.5%. RITHOLTZ: Yes.

Portfolio 130

Portfolio Investments Investing Numbers 130

The Big Picture

JANUARY 21, 2025

I was born in London and when I was three and a half, my father got a job for the World Bank in Washington DC So we all moved to Washington DC Then just before my 10th birthday, my father was posted to Bangladesh for four years. Barry Ritholtz : So you are from the uk but you’ve spent a lot of time in the us.

Investments 147

Investments Investing Management Retirement 147

The Big Picture

JUNE 18, 2024

I got the sense that, so Churnin takes 51% for a fairly modest valuation, 10 or $15 million. That, that gives Barstool a half a billion dollar valuation. 00:40:26 [Speaker Changed] They, they know, they know math, they know math. I think it’s a great book for 30 something men in investment banking.

Media 147

Media Food Advertising Investing 147

The Big Picture

OCTOBER 17, 2023

So I, I did a math degree at Oxford, which is more pure math. You know, pure math can be very theoretical and detached from the real world, and it’s getting worse. It’s just math stick to it over long periods of time. Then the volatility and, and the valuation makes an enormous difference.

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The Big Picture

OCTOBER 21, 2024

I’m good at math and science and you know, I always had an idea what go into business, but I felt that electrical engineering would be a good foundation. 00:03:11 [Speaker Changed] Yeah, we started out, I started on banking, the two year banking program, which merchant banking was the group I was in.

Numbers 147

Numbers Banking Investing Investments 147

The Big Picture

DECEMBER 12, 2023

And I was a math nerd as a kid. And Bank of America called me and said, would you like to be director of research and strategy? 00:24:08 [Speaker Changed] You, you want to do a preliminary sort and say, what would a good looking bank look like? If you can show me an equivalent bank that’s at an eight pe of course you can.

Management 264

Management Investments Investing Retail 264

The Big Picture

FEBRUARY 13, 2023

In fact, I was going to be a strategist, financial analyst to work for a bank and write research reports. And the ability to say, gosh, you know, there’s a lot of stuff in fixed income, that for a variety of reasons, central bank owns it, a pension fund owns it, insurance companies own it. RIEDER: Right. It has no value.

Economy 147

Economy Numbers Marketing Marketing 147

The Big Picture

MARCH 12, 2024

And we said, let’s just take a little detour here and make sure we understand the credit risk of these things before we sort of travel, start making markets and banking and, and, and really making these a core part of our business. There’s 00:14:11 [Speaker Changed] No money in that bank.

Banking 147

Banking Marketing Marketing Investing 147

The Big Picture

MAY 21, 2024

The transcript from this week’s, MiB: Savita Subramanian, US Equity & Quantitative Strategy, Bank of America , is below. They got bought by Bank America. And I think you will also, with no further ado, my discussion with Bank of America’s Savita. I’m kind of in intrigued by the idea of philosophy and math.

Numbers 147

Numbers Management Banking Marketing 147

The Big Picture

APRIL 8, 2025

Barry Ritholtz : So you leave Sanford Bernstein and then, which had really become Alliance Bernstein end up at Merrill Lynch, where eventually your same role Chief Investment Officer for Bank of America Merrill Lynch Wealth Management first, what did, was there still remnants of Mother Merrill when you joined post merger?

Asset Allocation 147

Asset Allocation Wealth Management Clients Assets 147

Aleph

JANUARY 14, 2023

link] Abundant liquidity from the Fed emboldened growth investors to bid prices to unsustainable valuations. link] Maybe, and it might be good to replace geometry with analytic geometry, but adding data science and probability will leave most STEM majors underprepared for college math. In the End, the Answer Was in the Textbook.

Math 59

Math Assets Banking Government 59

The Big Picture

JANUARY 7, 2025

So my dad was a diplomat for the World Bank, grew up in Nigeria, in Lagos, in Harare, Zimbabwe, and then in Hanoi, Vietnam. 00:24:49 [Speaker Changed] So let’s talk a little bit about valuation in the public markets. Does that valuation difference in the public markets extend to private markets as well? Where else?

Valuation 130

Valuation Engineering Marketing Numbers 130

The Big Picture

FEBRUARY 17, 2025

And so the way I came across finance is when I was in high school, I was applying for scholarships for college and I came across the Thomas Rex Smart Start Scholarship program that was run by Chase Bank. Within the investment bank. And I did a lot of options math, which I thought was interesting. 00:03:43 [Speaker Changed] Huh.

Investing 147

Investing Investments Economics Management 147

The Big Picture

NOVEMBER 25, 2024

This was the era, 2005, 2006, all of my friends were looking to get banking roles. And I, and I really like the application of math and statistics and computer science to markets. And so we, we get this contract written and I go off to grad school assuming I would go work at a big bank doing sales and trading in some quant role.

Portfolio 147

Portfolio Management Marketing Marketing 147

The Big Picture

MAY 16, 2023

Literally the first check-in to Robinhood, which went public in 2021 at about a $34 billion valuation. I think eventually it’s Dain Rauscher, which is now Royal Bank. RITHOLTZ: He was the first (inaudible) in round B at the higher valuation. Is it about the valuation? RITHOLTZ: Okay. LINDZON: Who is this guy?

Media 290

Media Investments Investing Valuation 290

The Big Picture

JUNE 3, 2024

Jeffrey Sherman : Well, what it was was, so I, as I said, with applications, there’s many applications of math, and the usually obvious one is physics. Barry Ritholtz : It seems that some people are math people and some people are not. The, the math came easier. And I really hated physics, really. It’s so true.

Math 147

Math Marketing Marketing Engineering 147

The Big Picture

MAY 6, 2025

Sander Gerber : Well, actually I was good at math. And at the time, you know, we used the deal code system and on Wall Street the banks were telling me, this is nonsense, we don’t even talk about it with investors. Because if you don’t include every single data point, then in the matrix math you have a divide by zero issue.

Risk Management 147

Risk Management Banking Portfolio Distribution 147

The Big Picture

OCTOBER 31, 2022

Now, this is — now, you’re going to China, China banks. SIEGEL: No, it’s more — no, it’s actually because the rise of interest rates has slowed down credit and it’s moved funds out of bank so much, that the liquidity is actually declining in the system. SCHWARTZ: This is like five P/E-type stocks.

Numbers 147

Numbers Investments Investing Marketing 147